Past year: ▲ 12953%(0.21c – 7.65 USD)
Each one in plain English, with the numbers worked through for a shareholder.
26 Feb 2021capital raising announcement▼ Bad
Stonepeak's warrant over junior securities was amended again. These amendments recur every few months from here on, each one extending or adjusting a claim that ultimately delivered Stonepeak control of the partnership.
2 Feb 2021capital raising announcement▼ BadMajor
A single quarter's preferred distribution to Stonepeak was paid by issuing 22.3 million new common units instead of cash or more preferred. Issuing tens of millions of units to settle one quarter's obligation is what it looks like when preferred capital eats the equity beneath it.
1 June 2018capital raising announcement▼ Bad
A further 220,214 units were issued to manager SP Holdings for its quarterly fee, the second such payment in the same year.
19 Mar 2018capital raising announcement▼ Bad
The partnership issued 210,978 units to its own manager, SP Holdings, as payment of the shared services fee. The manager is being paid in equity by a partnership whose units it also controls - dilution to a related party, quarter after quarter.
27 Jan 2017capital raising announcement▼ BadMajor
The partnership settled a dispute with Stonepeak over how its preferred units were being adjusted, issuing more units to close it. Fourteen months in, the terms of the preferred were already contested - a preview of a relationship that dominated the next seven years.
22 Nov 2016capital raising announcement▲ GoodMajor
The partnership sold 6.55 million units publicly at $11.00 to help pay for the Carnero processing stake - its only genuine public equity raise under Sanchez ownership.
What it means for a shareholder
6.5m new shares at $11.00 to raise about $72.0m. That's 60% dilution: every existing holder's slice gets 60% smaller. If you held $1,000 of shares (91 at the issue price), your slice goes from 0.00205% to 0.000828% of the company. To keep it you'd need 134 more shares - about $1,474 at the issue price.
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29 Sept 2015capital raising announcement● NeutralMajor
The transformative deal: the partnership agreed to buy the Catarina gathering system from Sanchez Energy for $345.8 million, funded almost entirely by selling $350 million of new Class B preferred units to a single institutional buyer, Stonepeak. It converts the partnership from a marginal producer into a midstream business - and hands an infrastructure fund a claim ahead of every common unitholder.
15 Apr 2015capital raising announcement● NeutralMajor
The partnership sold Class A preferred units privately to fund the Palmetto purchase, with registration rights and penalties if the resale registration was late. Preferred capital ahead of the common units is how this partnership funded every acquisition from here on.
